China’s exports to the US were down year-on-year in August. Beijing is expected to announce more economic stimulus measures to avert the risk of sharp economic slowdown.
- For the month of August, exports from the world’s second largest economy fell by 1% from a year earlier. Analysts had expected a 2% rise in a Reuters poll after July’s 3.3% gain.
- China’s exports to Europe, South Korea, Australia, and South East Asia also worsened on an annual basis, compared with July.
- Exports to Japan and Taiwan were slightly better than the July.
August saw dramatic escalations in the bitter year-long trade row, with Washington announcing 15 percent tariffs on a wide range of Chinese goods from September 1. Beijing hit back with retaliatory levies, and let its yuan currency fall sharply to offset some of the tariff pressure.
Even though both Beijing and Washington agreed to hold high-level talks in early October in Washington, there were no indications that the planned tariffs which are going to be imposed on Chinese exports to US would halted. Many analysts expect chinese economic growth to slow further in coming months with the on-going trade wars.